On Money, Investing and Behaviour

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It is NOT easy to control our temperament. It is not easy because the number of things happening around us affect us. The information that comes our way through popular media, confuses us. And we, more often than not, give in to them.

One needs great strength of mind to navigate through these monsters attacking us in the garb of events and information.

There have been some of the best minds who do it day in, day out. They have, with their experience, learnt to master their temperaments, developed an ability to cut through the noise and focus on what’s important. It has brought them enormous success, and may I add, happiness.

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The same experts have shared their ideas in pithy quotes. While these sayings or quotes refer to money or investing, they are not limited to it. The lessons are easily extendable to life in general.

They have helped me. Hope they are of value to you too.

What the best minds say?

Charlie Munger - life and investing
Charlie Munger

“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.”

“Our job is to find a few intelligent things to do, not to keep up with every damn thing in the world.”

“All intelligent investing is value investing — acquiring more that you are paying for. You must value the business in order to value the stock.”

“You don’t make money in buying and selling. You make money in waiting.”

Read: How to fail at investing?

Peter Lynch - life and investing
Peter Lynch

“If you’re prepared to invest in a company, then you ought to be able to explain why in simple language that a fifth grader could understand, and quickly enough so the fifth grader won’t get bored.”

“Behind every stock is a company. Find out what it’s doing.”

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“Know what you own, and know why you own it.”

“If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.”

“Although it’s easy to forget sometimes, a share is not a lottery ticket… it’s part-ownership of a business.”

“In the long run, it’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it.”

Read: 50 decision you can make with a financial plan

Warren Buffett - on life and investing
Warren Buffett

“Price is what you pay. Value is what you get.”

Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.”

“Only buy something that you’d be perfectly happy to hold if the market shuts down for 10 years.”

“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

“Risk comes from not knowing what you’re doing.”

“We don’t have to be smarter than the rest. We have to be more disciplined than the rest.”

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“Cash combined with courage in a time of crisis is priceless.”

“Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market.”

“Wide diversification is only required when investors do not understand what they are doing.”

“Calling someone who trades actively in the market an investor is like calling someone who repeatedly engages in one-night stands a romantic.”

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Between you and me: What’s your favourite one on life and investing? How would you extend it to life in general? Any other quote that you would like to share with me. I would love to hear from you.

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Vipin Khandelwal

Vipin Khandelwal

Vipin is a SEBI Registered Investment Adviser. He works with investors to make better decisions and create behaviour alpha.
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